Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information

Segment Information

8.Segment Information

We operate under three segments: Patient Services, Product and Research Services.  The Patient Services segment is focused on the diagnosis and monitoring of cardiac arrhythmias or heart rhythm disorders with our comprehensive suite of cardiac monitoring solutions in a healthcare setting.  The Product segment focuses on the development, manufacturing, testing and marketing of medical devices to medical companies, clinics and hospitals.  Our Research Services segment is engaged in central core laboratory services providing cardiac monitoring, imaging, scientific consulting and data management services for drug and medical device trials. Intercompany revenue relating to the manufacturing of devices by the Product segment for the other segments is included on the intersegment revenue line.

Expenses that can be specifically identified with a segment have been included as deductions in determining pre-tax segment income.  Any remaining expenses, including research and development costs incurred by the Product segment for the benefit of the other segments, as well as the elimination of costs associated with intercompany revenue are included in Corporate and Other. Also included in Corporate and Other is net interest expense and other financing expenses.  We do not allocate assets to the individual segments.

For the three months ended:

	Patient Services		Research Services		Product		Corporate and Other		Consolidated
March 31, 2015
Revenues	$	34,981	$	5,428	$	3,026	—		$	43,435
Intersegment revenues	—		—		991		(991	)	—
Income (loss) before income taxes	8,889		377		913		(10,100	)	79
Depreciation and amortization	1,809		908		94		141		2,952
Capital expenditures	1,148		856		68		—		2,072

	Patient Services		Research Services			Product		Corporate and Other		Consolidated
March 31, 2014
Revenues	$	29,294	$	4,840		$	3,028	—		$	37,162
Intersegment revenues	—		—			3,036		(3,036	)	—
Income (loss) before income taxes	5,533		(214		)	2,086		(14,372	)	(6,967		)
Depreciation and amortization	1,572		884			133		164		2,753
Capital expenditures	3,401		405			53		—		3,859